Obama caps executive pay tied to bailout money

#76
#76
rjd970 said:
Because you are all hear arguing that million dollar bonuses should be business as usual to get us out of this mess. There is every reason to believe that without the cap this is what we would see. It is what we saw last year with $18 Billion in bonuses and ridiculous severence packages.

I would love to make it to a point where I get paid millions of dollars for making stupid decisions.
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Be a politician.

:hi:
 
#77
#77
nickknx865 said:
I agree with you. However, these are corporations and companies who are receiving government assistance, which, technically, makes the gov't part owners in the companies.

Do I like having us spend an excruciating amount of money on businesses who were stupid with what they did? No. But, if we're going to temporarily have control over these banks, why not impose a few regulations? I don't want a business getting govt assistance to hand out a $20 million dollar bonus to a CEO who couldn't tie his own shoelaces without losing money.
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This crap has been brewing for a long time.

Government has no business in your private lives or the private sector!

As soon as government touches something.... it may take time.... it will fail!
 
#79
#79
rjd970 said:
They have control over the mortgages. And did the investment arms of these banks not trade MBS's?
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so? if the housing market didn't collapse the mortgages wouldn't been defaulting and the mbs wouldn't be worth 20c on the dollar.
 
#83
#83
rjd970 said:
Why would you think that business receiving government money to stay around is private?

And I don't know if he is saving Hollywood from going out of business like TARP was supposed to be used.
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They never should have received government money to stay around.
The government should not be in private business, period.
 
#84
#84
T-TownVol said:
They never should have received government money to stay around.
The government should not be in private business, period.
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cover-FoundingFathers.jpg
 
#87
#87
Moreover...

Obama's pay plan doesn't go far enough - Feb. 4, 2009

Johnson, the MIT professor who writes on the financial crisis at his Baseline Scenario blog, said a better approach for Obama would have been to set pay at firms receiving emergency aid even lower - say, on par with the civil service pay scale.

That way, he said, skilled employees would leave to work elsewhere in finance or hang out their own shingles, and less skilled workers would find a new vocation. The ultimate goal, he said, should be to create incentives that lead to the orderly breakup of the dysfunctional giant financial firms.

"They don't get restricted stock in the civil service," said Johnson. "Why should they get it at these failing banks?"
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#88
#88
At the risk of posting links like gsvol, I thought this one was good too, and touches on points made by myself and lawgator...

Commentary: Wall Street finally got what it deserved - CNN.com

First, the government is not acting here as regulator. It is acting as a provider of capital to the banks. If the financial services companies could find a private firm large enough to provide them with the capital they needed, I can promise they would have had to come up with even more stringent givebacks.

....

Second, it is really not fair to say that pay has been capped. There is no cap on payment in the form of restricted stock. The key point here is that the restricted stock grants do not vest until after the government has been paid off. As with Iacocca's pay package, there is enormous upside potential.

Third, the president's program is an essential first step in thinking about the role that executive compensation played in creating the economic meltdown. Perverse pay incentives and excessive compensation are not a symptom or a side benefit; they are a cause.

....

Warren Buffett famously told the executives at Salomon that, "If you lose money for the firm by bad decisions, I will be very understanding. If you lose reputation for the firm, I will be ruthless." Wall Street has lost reputation -- for itself and for the integrity of our financial markets.

It is time for America as investors and as citizens to be ruthless in forcing Wall Street to prove that the return on investment for every dollar spent on executive compensation provides competitive returns.
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#89
#89
I have to think there is some fine print somewhere that gets left out of the headlines. Something that lets these guys make more while Obama gets to enjoy the headlines of the putting the rich man in his place. If not, put another idea into the long line of failures Obama is starting.
 
#95
#95
allvol123 said:
I have to think there is some fine print somewhere that gets left out of the headlines. Something that lets these guys make more while Obama gets to enjoy the headlines of the putting the rich man in his place. If not, put another idea into the long line of failures Obama is starting.
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They should make a crapload of money once the TARP money is paid backwith interest and they are vested in the company stock. All Obama is saying with his plan is take care of business first before you take care of yourself.
 
#96
#96
rjd970 said:
They should make a crapload of money once the TARP money is paid backwith interest and they are vested in the company stock. All Obama is saying with his plan is take care of business first before you take care of yourself.
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and in the meantime, he's precluding the best potential leaders from the jobs.
 
#97
#97
rjd970 said:
Who says that is going to happen? I have no problem with him doing this for those receiving TARP funds. If the executives don't like it they can go find a job elsewhere, at a company that actually performed.
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If you do not believe this mentality will be tied to the $1T plan, then you are in fairy tale land.

As well, applying the principle of the precedent being set, it is not a stretch to say that this might end up encapsulating businesses who conduct most of their affairs with the government (either through direct coercion or through special consideration of business who apply certain caps to executive pay and bonus), or to industries in which certain players are creatively constrained by the cap (in order to level the playing field in such an industry).

BHO certainly has not drifted towards the center. He has leaped even further to the left in the past two weeks.
 
#98
#98
MG1968 said:
slippery slope.

what happens when Obama and friends think it's time that other industry's CEO pay adhere to their concept of "fairness" and "economic justice"?
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sometimes I hate being right:

Barney Frank: TARP's comp curbs could be extended to all businesses - Financial Week

Congress will consider legislation to extend some of the curbs on executive pay that now apply only to those banks receiving federal assistance, House Financial Services Committee Chairman Barney Frank said.

“There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies.
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